UBS downgrades Eaton to Neutral on lack of estimate upside

UBS downgraded Eaton (ETN) to Neutral from Buy with a price target of $360, down from $440. The company offers limited opportunity for positive estimate revisions in the near term, the analyst tells investors in a research note. The firm says estimate upside is “critical for high multiple stocks.” UBS sees Eaton’s initial 2026 guidance missing consensus estimates, while ongoing capacity additions will limit its margin expansion for the foreseeable future.